Lufthansa Cargo’s operating profit soars 222% in 2005

Lufthansa Cargo’s operating profit soars 222% in 2005    Lufthansa Cargo, a subsidiary of Germany’s Deutsche Lufthansa AG, reported an operating profit of 108 million euros ($130 million) in 2005, a massive jump of 222 percent compared to 33.5 million euros in 2004.
   Revenue in 2005 increased 10 percent to 2.88 billion euros ($3.47 billion) from 2.62 billion euros in the previous year.
   The increases came despite flat cargo volumes of 1.7 million tons, while capacity, measured in available cargo ton-kilometers, was up 1.3 percent.
   “Domestic demand in the air freight market is still weak while competition is steadily increasing. We owe our improved results in those difficult market conditions to rigorous cost management and to focusing our internal processes clearly on our customers,” said Chairman Jean-Peter Jansen.
   Lufthansa Cargo said its staff costs were down 2 percent to 335.4 million euros ($405.1 million).
   “In 2006, Lufthansa Cargo is again facing challenging conditions in the business environment. Although industry experts are expecting growth in the international air freight business to average 6 percent over the next five years, the market will be characterized by a growing imbalance in trade flows, high fuel costs and increasingly fierce competition,” the airline said in a statement.
   “We have charted the course for the future by strategically focusing on the forwarder as target customer, fine-tuning our product portfolio and pursuing stringent cost management,” said Stephan Gemkom, board member finance and human resources. “All in all, Lufthansa Cargo is well positioned for future operations in the airfreight business.”